Wacc Calculation

wd
0.09
Risk free rate
Equity risk premium
Cost of debt
Tax rate
beta unleverd industry
Bl
ke
wacc
 we
0.91
8.50%
7%
12.00%
33%
1.08
1.15156484
16.13%
15.41%
Scenario Summary
optimistic Normal Depression
Changing Cells:
INFLATION 4.00% 4.88% 6.00%
Price of 25gm ₹ 27.50 ₹ 25.00 ₹ 23.00
Price of 50gm ₹ 53.90 ₹ 49.00 ₹ 45.00
Price of 100gm ₹ 104.50 ₹ 95.00 ₹ 90.00
Company growth rate 15% 10% 8%
Interest Rate 11% 12% 14%
Industry growth rate 18% 15% 12%

Tax 30% 33% 35%

Result Cells:
NPV ₹9,263,281.66 ₹5,330,581.96 ₹3,582,149.95
IRR 42% 33% 28%
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
Estimated Cost Structure

Particulars
Raw Material Cost Per Kg ₹ 182.70
Selling Price per Kg ₹ 950.00
Raw material cost % wrt sales 20.15%
INFLATION 4.00%
No. of gujrati families 19822
No. of kerala families 1269
Price of 25gm ₹ 27.50
Price of 50gm ₹ 53.90
Price of 100gm ₹ 104.50
Company growth rate 15%
WACC 15.41%
Manufacturing expenses wrt revenue 10%
Interest Rate 11%
Wholesaler margin 5%
Retailer margin 10%
Industry growth rate 18%
WC requirement(%)
Salvage value(%) 10%
Depriciation 8.69%

Debt 9%
Equity 91%
D/E ratio 0.090
Building Rent ₹ 600,000.00
Plant Cost ₹ 2,411,222.00
Loan Amount ₹ 945,639.43
Tax 30%
No. of packet sold ratio of sales total quantity sold(kgs)
79288 0.1505979244 1982.2
118932 0.4517937731 5946.6
52334 0.3976083026 5233.4

13162.2

SALE Projections
Particulars Year 1 Year 2 Year 3

Sales Revenue
25gm pack 2180420 2607782.32 3118907.65472
50gm pack 6410434.8 7666880.0208 9169588.5048768
100gm pack 5468903 6540807.988 7822806.353648
Total 14059757.8 16815470.3288 20111302.513245

BEP for PPT

Particulars Year 1 Year 2 Year 3
Sales Revenue ₹ 14,059,757.80 ₹ 16,815,470.33 ₹ 20,111,302.51
Total Variable Cost ₹ 7,856,715.84 ₹ 9,191,791.44 ₹ 10,785,243.39
Contribution ₹ 6,203,041.96 ₹ 7,623,678.89 ₹ 9,326,059.12
Total FC 600000 624000 648960
Profit ₹ 5,603,041.96 ₹ 6,999,678.89 ₹ 8,677,099.12
Profit Volume Ratio 0.4411912388 0.4533729205 0.4637222835
BEP (in Rs) 1359954.4759423 1376350.39909345 1399458.3032408
25 gm 204806.32129985 207275.513294361 210755.51569524
50 gm 614418.96389955 621826.539883084 632266.54708571
100 gm 540729.19074293 547248.345916008 556436.24045982
BEP in QTY
25 gm 8192.252851994 8291.0205317745 8430.2206278095
50 gm 12539.162528562 12690.3375486344 12903.398920117
100 gm 5691.8862183466 5760.508904379 5857.2235837876
 Plant Cost
Particulars
Initialsetting up Investment
Sales Revenue
Raw Material cost
Manufacturing expense wrt rev
Adm expense
Depreciation
wholeseller margin (@ 5% of Rev)
Retailer margin (@10% of Rev)
Year 4 Year 5 Selling expenses (promotional cost)
Total Variable cost
Total Fixed Cost
3730213.5550451 4461335.411834 Total Cost
10966827.851833 13116326.110792 EBIT
9356076.398963 11189867.37316 Interest
24053117.805841 28767528.895786 Tax
PAT
Net operating cashflow
WC
change in WC
Year 4 Year 5 Release of WC
₹ 24,053,117.81 ₹ 28,767,528.90 Salvage value
₹ 12,686,533.76 ₹ 14,954,769.68 Net profit ratio
₹ 11,366,584.05 ₹ 13,812,759.22 FCF
674918 701915 NPV
₹ 10,691,665.65 ₹ 13,110,844.08 IRR
0.4725617752 0.4801510505
1428212.0040662 1461863.168558
215085.76335719 220153.55888193
645257.29007158 660460.67664578
567868.95063744 581248.93303031

8603.4305342878 8806.1423552771
13168.51612391 13478.789319302
5977.5679014468 6118.4098213717
 ₹ 2,411,222.00
Year 0 Year 1 Year 2 Year 3
₹ 10,867,937.84
₹ 14,059,757.80 ₹ 16,815,470.33 ₹ 20,111,302.51
₹ 2,833,041.20 ₹ 3,388,317.27 ₹ 4,052,427.46
₹ 1,405,975.78 ₹ 1,681,547.03 ₹ 2,011,130.25
₹ 780,000.00 ₹ 811,200.00 ₹ 843,648.00
₹ 209,535.19 ₹ 191,326.58 ₹ 174,700.30
₹ 702,987.89 ₹ 840,773.52 ₹ 1,005,565.13
₹ 1,405,975.78 ₹ 1,681,547.03 ₹ 2,011,130.25
₹ 519,200.00 ₹ 597,080.00 ₹ 686,642.00
₹ 7,856,715.84 ₹ 9,191,791.44 ₹ 10,785,243.39
₹ 600,000.00 ₹ 624,000.00 ₹ 648,960.00
₹ 8,456,715.84 ₹ 9,815,791.44 ₹ 11,434,203.39
₹ 5,603,041.96 ₹ 6,999,678.89 ₹ 8,677,099.12
₹ 109,733.52 ₹ 91,949.65 ₹ 81,835.19
₹ 1,647,992.53 ₹ 2,072,318.77 ₹ 2,578,579.18
₹ 3,845,315.91 ₹ 4,835,410.47 ₹ 6,016,684.76

₹ 216,256.06 ₹ 217,642.37 ₹ 218,181.88 ₹ 217,798.52

₹ 1,386.31 ₹ 539.50 -₹ 383.36

0.3985162505 0.4162642349 0.4314538613

-₹11,084,193.90 ₹4,053,464.79 ₹5,026,197.55 ₹6,191,768.42
₹9,263,281.66
42%
 Year 4 Year 5

₹ 24,053,117.81 ₹ 28,767,528.90
₹ 4,846,703.24 ₹ 5,796,657.07
₹ 2,405,311.78 ₹ 2,876,752.89
₹ 877,393.92 ₹ 912,489.68
₹ 159,518.85 ₹ 145,656.66
₹ 1,202,655.89 ₹ 1,438,376.44
₹ 2,405,311.78 ₹ 2,876,752.89
₹ 789,638.30 ₹ 908,084.05
₹ 12,686,533.76 ₹ 14,954,769.68
₹ 674,918.40 ₹ 701,915.14
₹ 13,361,452.16 ₹ 15,656,684.81
₹ 10,691,665.65 ₹ 13,110,844.08
₹ 72,833.32 ₹ 64,821.65
₹ 3,185,649.70 ₹ 3,913,806.73
₹ 7,433,182.63 ₹ 9,132,215.70

₹ 239,039.02
₹ 21,240.50
₹ 239,039.02
₹ 241,122.20
0.4445022777 0.4557514874
₹7,571,460.98 ₹9,758,033.58
 Estimated Investment Plan
Equipement COST year dep rate(%)(SLM)

Coconut milk storage tank 320132 15.5 8.50%

Additive mixing tank 352145 15.5 8.50%
Batch Pasteutizer 165000 15.5 8.50%
Extracter 35000 12.5 10.50%
agro waste vertical(5000 litres) 60000 12.5 10.50%
Volumetric filling machine 400000 15.5 8.50%
horizontal rotary retort 250000 25 6%
Sterilization tank 352145 15.5 8.50%
coconut residue mixer 40800 15.5 8.50%
Homogenizer 120000 12.5 19.20%
Spray drier 156000 15.5 8.50%
Coconut residue storage bins 150000 25 6%
Packing machine 10000 10 8%

Total Cost 2411222

Depriciation 8.69%
Year 1 2 3 4 5
kgs of milk powder 13162 14478.2 15926.02 17518.622 19270.4842
number of coconuts 157944 173738.4 191112.2 210223.464 231245.8104
1.5% loss 2369.16 2606.076 2866.684 3153.35196 3468.687156
total number of coconuts ordered 160313.16 176344.476 193978.9 213376.816 234714.49756

Ordering cost
transporation cost 4500 4719.6 4946.141 5183.55556 5432.3662252
labour charges 350 367.08 384.9935 403.781187 423.48570892
loading and unloading cost 700 734.16 769.987 807.562374 846.97141784
administrative cost 3900 4090.32 4286.655 4492.41482 4708.0507285
total ordering cost per order 9100 9544.08 10002.78 10483.5327 10987.388372

Holding cost
Cost of coconut 15 15.732 16.49972 17.304908 18.149387525
Losses 35537.4 40998.7876 47299.48 54568.4656 62954.547398
warehouse rent 6000 6000 6000 6000 6000
total holding cost 41537.4 46998.7876 53299.48 60568.4656 68954.547398
holding cost per unit 0.2591016 0.26651693 0.274769 0.28385683 0.2937805211

year 1 2 3 4 5
sales 12781598 14059757.8 15465734 17012307 18713537.632
Shelf life of coconut 1 month 1 month 1 month 1 month 1 month
No. of orders 12 12 12 12 12
quantity in one order 13359.43 14695.37 16164.91 17781.4 19559.54
Cost of inventory per order 12561.45 13460.65 14444.41 15530.9 16733.6
Cost of inventory of 12 orders 150737.4 161527.7 173332.9 186370.9 200803.2

ICP 4.30456 4.19336 4.090753 3.998597 3.916586

RCP 60 59 58 57 57
Account receivable 2101085 2272673 2457569 2656716 2922388
PDP 15 16 17 18 18
Accounts payable 525271.2 616318.2 720321.8 838963.1 922859.4
CCC 49.30456 47.19336 45.09075 42.9986 42.91659
Cash and cash equivalents 25122.9 26921.29 28888.81 31061.81 33467.2
NOWC 1600936 1683276 1766136 1848815 2032996
WC 216256.1 217642.4 218181.9 217798.5 239039